Top Reasons to Automate Accounts Payable
Even though technology makes Accounts Payable payment automation indispensable for many businesses, 60 % of corporations in the United States are unaware of the numerous benefits associated with A/P automation. Leveraging software applications to apply the process in manner that is seamless and trouble-free, the following are our top five reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, consequently removing estimation. With greater transparency from A/P automation, visibility into the process allows your A/P department to give attention to activities and things that can effect your department with value add actions.
Improve central controls
A manual A/P method is susceptible to fraud. You multiply the issues of human error, late payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and deter fraud.
The outdated manual process suffers from lack of awareness, by which can result in failing to acknowledge a part of risks. This can understate operating expenses and therefore overstate income, that may cause accounting and reporting abnormalities and ultimately fraudulent activity. A/P automation provides an entire audit trail of every part of the method, and lets management to check here swiftly correct possible problems.
Your vendors prefer a more efficient payment process. Easier payments result in discount rates and cost savings for you. Whenever you pay your customers by means of virtual credit card, which is a single issued card for a one-time use, you earn monthly cash rebates. It’s jointly beneficial for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a revenue generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes can be very expensive and take many more info resources to manually handle. With payment automation, you can see where, when and why faults happened. Contrary to the manual procedure, with automation you’ll be in a position to methodically address and reduce mistakes to enhance quality.
A/P payment automation will save you cash, earn you extra income, reduce the risks of fraudulent activity, provide your operations greater transparency, fulfill the customers’ demands, and improve the total quality of your A/P processes.